On January 16, 2025, the Union Cabinet sanctioned the 8th Pay Commission in order to revise salaries and pensions of 49 lakh workers and 65 lakh retirees. It is an initiative announced by PM Narendra Modi to meet inflation and economic requirements.
Ongoing Delays in Formation
Employees are anxious because the Terms of Reference (ToR) and appointment of committee are yet to be made by September 2025. The Department of Personnel and Training (DoPT) announced that the last date of application to important posts would be extended till July 31, 2025, though the extension is likely to happen again.
Expected Salary Hike
It is estimated that the fitment factor is between 2.28 and 2.86 and the minimum salary may be raised to about 41,000-51,480. This 2035 percent increase is meant to match the increase in living expenses.
Pension Reforms Proposed
The present minimum pension of ₹9,000 has the potential to increase to 20,500-25,740 with the new fitment factor. Dearness Relief (DR) will be re-hitched to zero at the time of implementation and combined with basic pensions going forward.
Concerns over Implementation Timeline
It was originally planned to be implemented on January 1, 2026, but since the establishment of the commission can take longer, it might not be implemented until late 2026 or early 2027. A history trend that supports this estimate is the 33 months process of the 7 th CPC.
Consultation and Union Requests
JCM wants ToR to be finalized and DA merged faster since DA is over 55%. Some consultations with the ministries and states are in progress, but no budget is allocated in February 2025, which concerns.
Projected Salary and Pension Changes
| Category | Current Amount (₹) | Fitment 2.28 (₹) | Fitment 2.86 (₹) |
|---|---|---|---|
| Minimum Salary | 18,000 | 41,040 | 51,480 |
| Mid-Level Salary | 50,000 | 1,14,000 | 1,43,000 |
| Minimum Pension | 9,000 | 20,520 | 25,740 |
Plan for the Future
Individuals who work or receive pensions are advised to access dopt.gov.in on a regular basis with plausible delay. Estimate revised base 8th CPC salaries and pensions online with 2026-2027 rollout plans with retrospective arrears.
Also read: Gratuity Rules 2025: Tax-Free Limit Remains ₹20 Lakh for Private Sector Employees